Back in 2021, the FTC announced substantial changes to the Rule that imposed more detailed and rigorous security requirements for covered financial institutions and was largely based on the New York State Department of...more
The SEC’s Cybersecurity Proposals -
The SEC has proposed four rules designed to address cybersecurity risk and management, including incident reporting by public companies....more
7/21/2023
/ Board of Directors ,
Broker-Dealer ,
Corporate Governance ,
Corporate Management ,
Cybersecurity ,
Disclosure Requirements ,
Enforcement Actions ,
Investment Adviser ,
Investment Companies ,
Oversight Duties ,
Policies and Procedures ,
Proposed Rules ,
Publicly-Traded Companies ,
Risk Assessment ,
Risk Management ,
Securities and Exchange Commission (SEC)
On May 1, 2023, the New York State Department of Financial Services (DFS or Department) issued a consent order (Consent Order), imposing a $1.2 million fine on bitFlyer USA, a cryptocurrency trading platform and custodial...more
5/17/2023
/ BitLicense ,
Compliance ,
Consent Order ,
Crypto Exchanges ,
Cryptocurrency ,
Cybersecurity ,
Enforcement Actions ,
Enforcement Priorities ,
Financial Regulatory Agencies ,
Licenses ,
Licensing Rules ,
NYDFS
On January 4, 2023, the New York State Department of Financial Services (“DFS”) announced that Coinbase, Inc., a major U.S. cryptocurrency exchange, will pay a $50 million penalty and invest an additional $50 million in its...more
1/17/2023
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Coinbase ,
Compliance ,
Consent Order ,
Crypto Exchanges ,
Customer Due Diligence (CDD) ,
Cybersecurity ,
Enforcement Actions ,
Government Investigations ,
Know Your Customers ,
Money Transmitter ,
NYDFS ,
Office of Foreign Assets Control (OFAC) ,
Regulatory Violations ,
Settlement ,
Statutory Violations ,
Virtual Currency
Under the updated Rule, FIs are obligated to implement data security measures that will protect against data breaches and cyberattacks in order to prevent financial harm to consumers, including identity theft and loss of...more
On August 30, 2021, the Securities and Exchange Commission (“SEC”) announced three settled orders against several investment advisers, broker-dealers, and dual registrants for violations of Regulation S-P allegedly resulting...more
Ever since the New York State Department of Financial Services (DFS) instituted its first-in-the-nation Cybersecurity Regulation in 2017, banks, insurance companies, and others in the financial services industry wondered what...more
On April 16, 2019, the Office of Compliance Inspections and Examinations (OCIE) of the Securities and Exchange Commission (SEC) issued a risk alert, “Investment Adviser and Broker-Dealer Compliance Issues Relating to...more
March is now here and with it the Cybersecurity Regulation of the New York Department of Financial Services (NYDFS) is now in full force and effect, including requirements relating to Third Party Service Providers (e.g.,...more
As chief compliance officers prepare for their annual compliance reviews, they should familiarize themselves with the examination priorities letter the Securities and Exchange Commission (SEC) issued last month and other...more
Following other regulators, the National Futures Association (NFA) recently amended its cybersecurity guidance to, among other things, impose a new cybersecurity incident reporting requirement on members....more
On February 21, 2018, the U.S. Securities and Exchange Commission (“SEC”) issued cybersecurity disclosure guidance for public companies (“SEC Guidance”) that, according to SEC Chair Jay Clayton, “reinforces and expands” on...more
On August 7, 2017, the Securities and Exchange Commission (SEC) released its latest cybersecurity risk alert, detailing findings from the examination of 75 broker-dealers, investment advisers and investment companies carried...more
8/17/2017
/ Broker-Dealer ,
Cybersecurity ,
Data Breach Plans ,
Data Privacy ,
Data Protection ,
Data Security ,
Investment Adviser ,
OCIE ,
Popular ,
Risk Alert ,
Securities and Exchange Commission (SEC) ,
Third-Party ,
Training
With the first compliance deadline now less than two months away, the New York Department of Financial Services (NYDFS) has provided additional clarity concerning its new Cybersecurity Requirements for Financial Services...more
On May 17, 2017, the Office of Compliance Inspections and Examinations (OCIE) of the United States Securities and Exchange Commission (SEC) issued a risk alert highlighting the importance of registered broker-dealers,...more
On March 27, 2017, the Colorado Department of Regulatory Agencies proposed changes to the Colorado Securities Act that would impose new cybersecurity requirements on investment advisers and broker-dealers (the “Proposed...more
On February 16, 2017, the New York Department of Financial Services (NYDFS) announced the release of its finalized Cybersecurity Requirements for Financial Services Companies (“Cybersecurity Regulation”), which will take...more
With the clock ticking down to the new year, on December 28, 2016, the New York State Department of Financial Services (NYDFS) released highly anticipated revisions to its proposed Cybersecurity Requirements for Financial...more
Welcome to the 2015 Mid-Year Report from the BakerHostetler Securities Litigation and Regulatory Enforcement Practice Team. The purpose is to provide a periodic survey, apart from our team Executive Alerts, on matters we...more
8/5/2015
/ 401k ,
Administrative Procedure Act ,
Bank of New York (BNY) Mellon ,
Broker-Dealer ,
CFTC ,
Commodities ,
Commodity Exchange Act (CEA) ,
Conflicts of Interest ,
Cybersecurity ,
Department of Justice (DOJ) ,
Dodd-Frank ,
Duty to Monitor ,
Employee Retirement Income Security Act (ERISA) ,
Enforcement Actions ,
False Statements ,
Financial Industry Regulatory Authority (FINRA) ,
Financial Institutions ,
Financial Markets ,
Form 10-Q ,
Futures ,
Hedge Funds ,
Insider Trading ,
Interest Rates ,
Investment Adviser ,
KBR (formerly Kellogg Brown & Root) ,
Libor ,
Loss Causation ,
Merrill Lynch ,
Omnicare v Laborers District Council ,
OMWI ,
Pensions ,
Perez v Mortage Bankers Assoc ,
Popular ,
Registration Statement ,
Regulation SHO ,
RICO ,
RMBS ,
Scienter ,
SCOTUS ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act ,
Securities Litigation ,
SLUSA ,
Stocks ,
Tibble v Edison Int ,
Tippees ,
UK ,
US v Newman ,
Whistleblowers
Cybersecurity has increasingly become a critical issue for all types of businesses, few more so than broker-dealers, investment advisers and others in the financial sector. The cyber threat is much broader than customer data...more
5/7/2014
/ Audits ,
Broker-Dealer ,
CFTC ,
Cyber Attacks ,
Cybersecurity ,
Enforcement Actions ,
Financial Industry Regulatory Authority (FINRA) ,
Investment Adviser ,
NIST ,
OCIE ,
Personally Identifiable Information ,
Regulation S-P ,
Risk Assessment ,
Securities and Exchange Commission (SEC) ,
Security Audits